Latest Query & Reply

MY CLIENT IS DEAL IN OF SECOND HAND USED  CAR   SALES AND PURCHASE

 EX: HE PURCHASE CAR RS 220000 FROM UNREGISTERED PERSON AND SALE THIS CAR TO ANOTHER PERSON RS 230000 THE MARGIN AMOUNT BETWEEN THIS TRANSACTION  IS RS 10000

ON WHICH AMOUNT HE IS LIABLE TO PAY GST???

Reply

As per Rule 32(5) of CGST Rules, 2017 Where a taxable supply is provided by a person dealing in buying and selling of second hand goods i.e., used goods as such or after such minor processing which does not change the nature of the goods and where no input tax credit has been availed on the purchase of such goods, the value of supply shall be the difference between the selling price and the purchase price and where the value of such supply is negative, it shall be ignored. Therefore, Taxable value will be Rs. 10,000/- in the above case.